Hello:
I received a K-1 which lists Rental Income (Line 2) and Interest Income (line 5) with a deduction in Box 13 coded AC (Interest expense allocated to debt financed distributions).
Turbotax flags the deduction by requiring more information on Schedule K-1 Additional Information. Am I correct in assuming the entry for this deduction is on line 7 (Invetsment Interest Expense) of Box 13 Other Deductions:, Code W to ZZ: Other Deductions? If not, what is the correct treatment?
FYI, The K-1 includes the following statement: This entity has filed an election under IRC Sec 163(J) to be treated as an excepted trade or business and is therefore not subject to the business interest expense limitation.
Many thanks for your reply,
